Are you facing foreclosure and hoping to get a mortgage modification? If so, there are few things that you need to know. While the mortgage modification program has been promoted as the fix-it all of the foreclosure, the reality is that only a small number of homeowners have successfully been placed in long-term mortgage modifications. Many homeowners facing foreclosure find that even after months of waiting for a mortgage modification approval they are still faced with losing their home in a foreclosure auction sale. Some of those homeowners eventually file bankruptcy in an effort to avoid foreclosure and remain in their home. If you are trying to get a home mortgage modification, find out if you qualify or not before you spend months waiting for the bank to respond.
Questions you should answer before going through the process:
- Is the home you want a mortgage modification on your primary residence? In order for a homeowner to qualify for a mortgage modification and avoid foreclosure, they must be living in the home and it must be their primary residence. In other words, rental properties don’t qualify.
- Was the mortgage on the home taken out before January 1, 2009? Only mortgages issued before January 1, 2009 will qualify for the mortgage modification program.
- Is the mortgage (including second mortgages) less than $729,750? If so, you may qualify for a mortgage modification and be able to avoid foreclosure.
- Do you have enough income to pay for a modified mortgage? Before actually working through the mortgage servicer you will only be able to guesstimate whether or not you can afford your modified mortgage. However, if you have no income then the answer is probably no.